Loss Carryback
Small Business Jobs Act of 2010 Also Offers Tax Incentives for Larger Businesses
On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 , or H.R. 5297 (hereafter, “the Act”). Though many of the Act’s provisions focus on small businesses , the new law also contains tax incentives that apply to all businesses as well as new retirement savings incentives for individuals . It is important to note that some of these provisions offer taxpayers a very small window of opportunity, requiring action before the end of the year to take advantage of the savings. INCENTIVES FOR ALL BUSINESSES The Act enhances and extends a number of tax incentives that were originally included in the Economic Stimulus Act of 2008 (“the 2008 Stimulus Act”) and the American Recovery and Reinvestment Act of 2009 (“the. Read More.
New Law Extends and Expands NOL Carryback Provisions
On November 6, 2009, President Obama signed into law the Worker, Homeownership, and Business Assistance Act of 2009 (H.R. 3548) , extending and enhancing a popular but temporary tax incentive — the five-year net operating loss (NOL) carryback provisions . Under the new law, the expanded five-year NOL carryback, which was originally available to qualifying small businesses for their years beginning in 2008, has been extended and enhanced to include 2009 NOLs for nearly all businesses, regardless of size. Qualifying small businesses that utilized the five-year carryback provisions for their 2008 tax year may also take advantage of the five-year carryback provisions for 2009. The availability of quick refunds from 2008 and 2009 NOL five-year. Read More.
Deadline Approaches for Loss Carryback Option
As many businesses struggle to free up much needed cash, the IRS has reminded taxpayers that the deadline for the expanded loss carryback option, provided by the American Recovery and Reinvestment Act (ARRA) , is approaching for small businesses. Eligible, calendar-year corporations have until September 15, 2009 to take advantage of this provision. Businesses citing a net operating loss (NOL) in 2008 can carry that loss back for up to five years, expanded from the usual two. The 2009 filing may apply as far back as 2003, which could result in a special, potentially expanded, tax refund. The option is available for an eligible small business (ESB) that has no more than an. Read More.
Can You Grow Your Business and Increase Opportunity in an Economic Downturn?
While the current economic conditions may prove challenging, there are tremendous opportunities as well. Reduced market values, shifting of assets and business closings can all create opportunity. Here are some areas to consider: Proactively address any Goodwill or Identifiable Intangible impairment issues and discuss with users of your financial statements. Consider second opinion impairment consultations, when applicable. Private equity companies should consider valuation studies on their portfolio companies. Consider acquisitions of competitors at reasonable valuations to create increased market share and ensure proper positioning once the economy rebounds. For closely held businesses, reduced company valuations can create an opportunity to reduce estate levels through gifting of. Read More.
Expanded Loss Carryback Options in the American Recovery and Reinvestment Act of 2009
Under pre-Act law, net operating losses (NOLs) may be carried back to the two years before the year that the loss arises and carried forward to each of the succeeding twenty years after the year that the loss arises. For 2008, the American Recovery and Reinvestment Act of 2009 extends the maximum NOL carryback period from two years to five years for small businesses with gross receipts of $15 million or less.